Question
A sum of ₹ x amounts to ₹ 4,050 in 1 year and to ₹
4,723.92 in 3 years at compound interest, when the interest is compounded annually, at a certain rate percentage per annum. What will be the simple interest on the same sum at the rate for 4( 2/5) years?Solution
Given that: x(1 + r/100) = 4050 -----------(1) x(1 + r/100)3 = 4723.92---------------(2) Dividing eqn 2 by 1, we get (1 + r/100)2 = 4723.92/4050 (1 + r/100)2 = 11664/10000 (1 + r/100) = 108/100 (1 + r/100) = 1+ 8/100 therefore, r = 8% also, x(1 + r/100) = 4050 x = 4050 × 100/108 = 3750 SI = (3750 × 8 × 22)/(100 × 100) = Rs. 1320
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